Staying Put

Research evidence excerpt

Staying Put

May 11, 2026 | 14:01 ET~

Telos Corporation

TLS-NSDQ Rating Price: May-8 Target Total Rtn Software

Market Perform $4.48 $5.00 12%

Keith Bachman, CFA Analyst

keith.bachman@bmo.com (347) 891-0258

Adam J. Holets Senior Associate

Staying Put adam.holets@bmo.com (646) 248-5505

Bradley Clark, CFA VP Associate

brad.clark@bmo.com (347) 853-4783

Bottom Line: Jonathan Stein Associate

TLS delivered a solid quarter with revenue upside in Security Solutions and improved jonathan.stein@bmo.com (718) 619-7165

profitability. Additionally, we were encouraged to hear that TSA Precheck trends remain Legal Entity: BMO Capital Markets Corp.

positive despite some uncertainty in the broader economic environment. Telos did not

2YR Price Volume Chart

raise the full-year guide despite the beat in the Q, and our estimates are largely staying 9.00

in place. We think management is taking a prudent approach to full-year guidance, and 8.007.00

we think there are pipeline opportunities in 2HFY26 and beyond. Net, we maintain our 6.00

$5 price target and our Market Perform rating. 5.00 30

4.00 20

3.00

2.00Key Points 10

1.00 0

Nov May Nov May

Good Q: TLS reported upside across key metrics in Q1 including revenue and Adj. LHS: Price ($) / RHS: Volume (mm) Source: FactSet

EBTIDA. Security Solutions revenue grew by 78% y/y and primarily drove revenue Company Data in $

upside in the Q with notable strength in the Telos ID business, in our belief. Notably, we

Dividend $0.00 Shares O/S (mm) 78.4

think that the TSA precheck business remains strong despite some uncertainty in the

oil market, and that enrollments trends have remained positive through the year thus Yield 0.0% Market Cap (mm) $351

far. Moreover, Adj. EBITDA was above the high-end of guidance, and Adj. EBITDA margin EV (mm) $298 AD Vol.